Posts Tagged medical marijuana law

The New Hampshire Senate has recently passed a medical marijuana law, but the controversial legislation found its way back to the House Health, Human Services, and Elderly Affairs Committee last Tuesday.

Senate Bill 409, which allows patients with debilitating medical conditions to acquire up to 6 ounces of marijuana or grow up to four plants in a secured facility, had law enforcement officials doubtful as to the benefits of marijuana to patients and raised concerns on people who might be taking advantage of the said provision.

Bill sponsor Sen. Jim Forsythe (R- Strafford), who is a former Air Force pilot, claimed that the only motivation why he is pushing for the bill to be approved is the fact that it will be able to help patients who have resorted to just about every drug but only found the remedy in marijuana.

Gov. John Lynch, who has been one of the strongest members on the opposition’s side when it came to medical marijuana issues, has sat down with Sen. Forsythe and confirmed that he is looking over the senator’s proposal. Forsythe said he would welcome the governor’s participation and ideas for the improvement of the bill but the governor’s camp has yet to coordinate with his group.

When the bill was passed by the House and the Senate, Governor John Lynch submitted a veto and there weren’t enough votes to override it.

During the last meeting, medical marijuana supporters and non-supporters gathered where there were noticeably fewer medical marijuana patients. Officials from the Attorney General’s office and police representatives stood for the opposition’s side during the forum.

New Hampshire Association of Chiefs of Police representative Chief Franklin Goldstein voiced out the group’s apprehension on the confessions of patients that were relieved of their illnesses through medical marijuana. “If there are scientific studies that show the benefits, let’s see them. What we’re hearing is anecdotal,” Goldstein said.

Medical marijuana dispensaries are facing a serious threat — not only from federal agencies, but also from the IRS. Could this spell the death of medical marijuana in the country?

At least 12 medical marijuana dispensaries in California are reportedly under audit by the IRS, insisting that past business deductions are invalid because of a clause in the federal tax code that prohibits any business to claim tax deductions for “trafficking” in Schedule I or II drugs. Cannabis is a Schedule I drug. IRS has declared in the past that some dispensaries owe the government millions in back taxes as a result of Section 280E of the U.S. Tax Code.

No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business is conducted.

The IRS has earlier attempted to use this clause to go after medical marijuana dispensaries, as it declared in 2007 that the dispensary Californians Helping to Alleviate Medical Problems (CHAMP) owed nearly half a million dollars in back taxes. CHARM brought its case to U.S. Tax Court. It was successful in cutting its payments from $426,000 to $4,905.

Three dispensaries have gone public with their audits — Harborside Health Center in Oakland, The Farmacy in Los Angeles and Marin Alliance for Medical Marijuana in Fairfax. The final determination handed down by the IRS to MAMM indicates that the dispensary owes nearly $800,000 in back taxes from 2009 alone, resulting from businesses deductions now considered invalid.